to Acquire Twitch for $970 Million

Aug 26, 2014, Inc. announced it has reached an agreement to acquire Twitch Interactive, Inc., a live video platform for gamers. In July, more than 55 million unique visitors viewed more than 15 billion minutes of content on Twitch produced by more than 1 million broadcasters.

Twitch launched in June 2011 to focus exclusively on live video for gamers. Under the terms of the agreement, Amazon will acquire all of the outstanding shares of Twitch for approximately $970 million in cash. The acquisition is expected to close in the second half of 2014.

But the acquisition is a little more interesting than it seems at the outset. In July, Twitch was rumored to be entering into a $1 billion deal with Google, until Amazon entered the picture. And, as Business Insider reports, it's no wonder that two giants like Google and Amazon would be battling over this company, which came in behind Netflix, Google, and Apple in terms of peak internet traffic in February of 2014.